Central bank pledges to further maintain price stability

The National Bank of Moldova (NBM) said in a press release statistical data have confirmed its forecasts on inflation, Info-Prim Neo reports. In February, the consumer price index (CPI) for the last 12 months stood at 5.5%, down 1.2 percentage point on the previous month. The monthly inflation rate was 1.2% as tariffs for consumer services rose by 2.6%; food prices by 1.1%, and non-food prices by 0.2%. Inflation in February was mainly driven by seasonal factors as well as higher gas and heat rates and other related prices. The annual core inflation rate continued its downward trend started in December 2010, rising by 3.3% in the last 12 months, which is by 0.2 percentage point lower than in the previous month. The monthly core inflation rate in February was 0.5% due to second-round effects following the increase in energy and food prices as well as a slight depreciation of the national currency against the Russian ruble and the Euro. Although the annual inflation rate continued to follow the downward trend started in January 2011, the 2.2 percentage point gap between CPI and core inflation further demonstrates the increased influence of non-monetary factors on inflation processes. The National Bank said that the main inflation-related risks continue to be associated with the development of oil and food prices on the international markets, but assured that it will employ all the available monetary policy instruments to maintain price stability.